Gross Disposable Household Income (GDHI) is the amount of money that all of the individuals in the household sector have available for spending or saving after they have paid direct and indirect taxes and received any direct benefits. GDHI is a concept that is seen to reflect the “material welfare” of the household sector.
GDHI is important as it gives an indication of the standard of living and monetary well-being of people.
Key Messages:
- Total GDHI in County Durham in 2021 was £8,982 million, representing 19.2% of the total North East GDHI and the highest proportion out of the twelve North East authorities,
- In 2021, County Durham had a GDHI of £17,228 per head, a rise of 5.3% from 2020.
- In 2021, total GDHI for England was £1,255.87 billion. GDHI per head was £22,213,
- The North East had the smallest share of England GDHI with £46,749 million representing 3.7% of total GDHI in England. This was an increase in GDHI in the North East from £45,397 million in 2020 (3% increase),
- The North East had a GDHI per head figure of £17,663, the lowest out of the nine English regions, representing a rise of 4.3% from 2020.
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Why is it important?
Gross Disposable Household Income (GDHI) is the amount of money that all of the individuals in the household sector have available for spending or saving after they have paid direct and indirect taxes and received any direct benefits. GDHI is a concept that is seen to reflect the “material welfare” of the household sector. Income distribution measures include taxes, social contributions and benefits. GDHI is calculated as the money earned or received by the household and non-profit institutions serving households (NPISH) economic sector (resources, or incomings), less the money paid out by households and institutions associated to income (uses, or outgoings). It is a measure of short-term average earnings based on the Monthly Wages and Salaries Survey.
Resources, or incomings, of the household and NPISH sector include:
- operating surplus, for example, imputed rental mixed,
- income, for example, self-employment income,
- compensation of employees, for example, wages and salaries,
- property income received, for example, interest earned on savings,
- social contributions and benefits received, for example, Jobseekers Allowance, State Pension,
- other current transfers received, for example, settlements of accident insurance, monetary gifts.
GDHI is important as it gives an indication of the standard of living and monetary well-being of people. Total GDHI estimates in millions of pounds (£ million) are divided by the resident population of a region to give GDHI per head in pounds (£). Per head data take account of the entire resident population of regions, sub regions and local areas. The working population and the economically inactive are included and, therefore, GDHI per head are estimates of values for each person, not each household. The data can be used to compare regions of different sizes.